ViaLogy and ASTFS are jointly piloting a rapidly-deployable end-to-end field service for buried oil and gas pipeline location surveys and degradation assessment. The pilot flights and subsequent service offering meet two high-demand needs in the pipeline industry. First, federal and other regulations stipulate that pipeline maintenance condition meets certain standards and that regular inspections be conducted to insure standards are met. Second, pipeline repair obliges operators to know exact pipeline location in order to find and repair it, and avoid inefficient manual probes. The companies' new service offering, branded "ASSIST", will significantly reduce time and costs compared to current survey techniques. This service is being offered to early pilot customers at around $2,500 per km for pipeline geo-location. The ViaLogy-ASTFS contract marks the completion of a key milestone under the Memorandum of Understanding announced by the companies on 1 July, 2008.

Following success of the pilot survey, ASTFS has agreed to deliver minimum revenues of US$26.5 million to ViaLogy for market exclusivity in North America over a period of five years.

Mr. Jim Muller, President of ASTFS stated; "ViaLogy's prior technical expertise in electromagnetic subsurface imaging and sensor fusion, and especially ground-penetrating SAR, is key to our ability to market and offer a differentiated, well-priced service to our pipeline customers. To date, the pipeline industry has been unsuccessful in exploiting cost-benefits of aerial sensing due to sensor, signal processing and performance limitations." He added "These pilot surveys will include geolocation and health assessments for over 200km of pipeline segments."

ASTFS has been leading the down-selection of natural gas pipeline segments for the pilot surveys to include rugged terrain, rapid elevation and ground moisture changes and proximity to urban populated areas in order to demonstrate the unique capability of ViaLogy's subsurface imaging technology, and to prove it will work under "worst case" conditions where standard SAR has not worked well in the past.

ASTFS and ViaLogy have also entered into discussions regarding an aerial pilot for off-shore buried oil gathering and transportation pipeline location. These oil pipelines are down to 3 in. to 6 in. in diameter and often cross-over each other. It is estimated that there are 450,000 miles of natural gas and over million miles of oil transportation lines in North America with 98% being underground. According to US Department of Transportation's Pipeline Safety Program Office regulations, currently the pipeline companies are required to survey their pipelines on a quarterly to annual basis depending upon proximity to population areas and railroad crossings.

According to ViaLogy President and CEO Robert Dean, "This is an excellent market opportunity for our QSUB(TM) subsurface imaging platform powered by our patented signal processing technology - QRI(TM). The ability to provide guaranteed location information in a cost-effective manner should provide the firms' near-term access to a large addressable market which has been valued in excess of $2bn. We are very pleased with ASTFS success in acquiring potential customers and strategic partners in the pipeline industry at this early stage."

ViaLogy also disclosed that recently it had received approval from US Dept. of Commerce to deploy QSUB globally for subsurface pipeline imaging.

About ViaLogyViaLogy is a leading innovator of network-centric, real-time signal processing platforms for sensor applications. ViaLogy is currently deploying and designing computational systems, powered by its patented technologies, for applications in life sciences, public safety and security, surveillance, defense and geoseismology. Vialogy focuses on market driven problems where automation, timeliness, quality and reliability of information processing are essential. ViaLogy's core competency incorporates rapidly and accurately detecting weak signals buried in high noise background and clutter. This technology can be employed to solve problems involving sensor integration and information overload challenges involving video, telephony and control sensors, as well as for enhancement of numerous signal processing applications.

About ASTFSAdvanced Spatial Technologies Field Services (ASTFS) has a ground breaking software solution teamed with industry leading hardware. ASTFS is dedicated to developing innovative solutions for the accurate tracking and inventory of above and below ground organizational assets. We have created this by integrating rugged field grade Panasonic Toughbook hardware, advanced Trimble global position system receivers (GPS), radio frequency ID (RFID) tagging, rugged digital cameras and geographical information system (GIS) data mapping technologies into a shared software platform. ASTFS's primary market segment is providing GIS based asset management software and services to the oil and gas pipeline industry.